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Junex reaches net income for a third consecutive quarter

MONTREAL, May 30 - Junex filed today its financial resultsfor the first quarter ended March 31, 2006. During this quarter, the companyrecorded net income of $32,290, a significant improvement compared to the netloss of $377,437 for the same period of 2005.

"We have had our best financial year in 2005 and we are pleased to seethat we have continued in 2006 the trend started in the third quarter of 2005.Our goal for the entire year of 2006 still to reach positive cash flows fromour exploitation activities while pursuing the exploration effort throughpartnerships. First quarter sales are higher then expected but we are stillworking with a conservative budget forecasting sales of $3M for the full year"stated Mr. Jean-Yves Lavoie, P. Eng., President of Junex.

Junex's sales for the three-month period ended March 31, 2006 totalled$1,180,230 up 966% from $110,715 for the same quarter in the previous year.The consolidated sales are essentially coming from our subsidiary Foragazwhich had not registered any sales in 2005 and has generated sales of$1,168,580 in 2006.

We expect that the sales of our subsidiary Foragaz to be lower during thenext quarter but we hope that drilling contracts will be signed and carriedout during the and fourth quarter of the current year. The sales of naturalbrine and oil have been almost non-existent during the first quarter.Historically, the majority of the natural brine sales is noted during thesecond quarter of the year, which should be the case for 2006. As for thesales of natural gas, the Marinard Plant, which was our only customer for thegas produced at the Galt No.1 and Galt No.3 wells, has reduced its consumptiondue to financial difficulties. We are currently seeking a new customer forthis gas in order to re-start theses operations for the third quarter of 2006.At last, the tests at the Galt No.3 and Haldimand No.1 wells will probablyallow us to register sales for oil during the last two quarters of 2006.

Net income and EBITDA

The net income for the first quarter of 2006 amounted to $32,290 comparedto net loss $377,437 in the prior year's first quarter. The increase in thenet income is primarily attributable to an important increase in sales andoperational gross profit. Earnings before interests tax and amortization(EBITDA) was of $135,429 during the first quarter, an important improvementcompared to a negative EBITDA of $387,055 in 2006. This result reflectsessentially on the growth of the gross profit. Junex's goal remains to be ableto show a positive EBITDA for the entire 2006 exercise.

Financial position

As at March 31, 2006, Junex's working capital amounted to $3,115,286, asmall reduction compared to the working capital of $3,330,123 at the end ofthe 2005 exercise.

Cash flows from exploitation and Deferred exploration cost

During the first three quarters of the year, the company's exploitationactivities have generated cash flows of $165,240 in comparison with a negativecash flow of $353,613 in 2005. The increase in sales and profits before incometaxes are mainly responsible of this situation.

During the first three quarters of the year 2006, Junex has spent$267,525 as deferred exploration expenses compared to $258,569 in 2005. Theseexploration expenses, less deduction from income taxes credit and partnershipscontribution, are capitalised as investments which will be amortised orwritten off depending on the developments which will occur on the differentproperties during the coming years. In 2005, Junex has written off an amountof $113,840 which was directly applied and shown as expenses on the Earnings.No radiation or write off was applied during the first quarter.